HomeInsurance.com Study Shows: Homeowners Left in the Dark

WILMINGTON, N.C., Aug. 18 /PRNewswire/ -- In a recent study performed by
HomeInsurance.com, it was found that 54 percent of all homeowners surveyed
admitted to know, "not much at all" about their home insurance policies.
"The reason people need to understand their homeowners insurance is
because it's the only way to know if you have the right amount of insurance
and the right type of insurance," said Carolyn Gorman V.P. of the Insurance
Information Institute.
According to HomeInsurance.com, it is vital for homeowners to understand
their coverage so that they can ensure they are adequately covered in the
event of a disaster. Some of the most dangerous aspects of a home insurance
policy to be ignored include replacement value, deductibles and covered
losses.
Replacement value is listed on your home insurance policy as the value to
replace your home in the event that it was completely destroyed.
"So often a homeowner will upgrade their home and never update their home
insurance policy. When the listed replacement value is no longer enough to
rebuild their home to the new standards, the homeowner is often left
underinsured," said Carlos Lagomarsino, CEO of HomeInsurance.com.
Also, when a homeowner is unaware of their home insurance deductibles they
are putting themselves in a situation where they may be paying too much for
home insurance or even worse, inadequately insuring themselves.
Oftentimes a homeowner will set their deductibles really high or low,
depending on their financial ability/inability to cover damages if need be. If
their financial situation changes, they often neglect to update their
deductible. This can cause a homeowner to pay either an unnecessarily high
premium or leave them unprotected with a high deductible they cannot afford to
meet in the event of a claim.
Lastly, one of the most poorly understood aspects of homeowners insurance
is actual coverage. Homeowners insurance policies can vary in types of
coverage but a standard home insurance policy typically covers dwelling,
contents, other structures, medical payments, liability and loss of use.
"When talking to homeowners it becomes apparent that many of them are
unaware of the limitations of their policies. Some homeowners don't realize
that they have liability insurance built into their homeowners insurance.
Others think that flood damage is covered," said Lagomarsino.
Homeowners can gain an in-depth understanding of standard home insurance
coverages by visiting our Home Insurance 101 Guide.
SOURCE HomeInsurance.com

Carrie Van Brunt, HomeInsurance.com, +1-877-506-9466 x 1043,
cvanbrunt@homeinsurance.com